Any igaming operator will confirm that a robust risk management system is an essential part of every online betting and gaming business. You may have the most functional and game-rich sports betting or casino platform and yet eventually be left with a negative ROI. This will happen if your platform has not been properly protected from fraudulent gaming and betting activities.
We won’t be reinventing the wheel if we say that gambling is a rather risky sector. Not to mention igaming, which is a great target for cheaters and fraudsters. Bonus hunters, multiple account players, late bettors, etc. are the biggest headache for every igaming risk manager. As the Internet practically provides global market access, professional players are in constant search of ways to take advantage of odds imperfections, system loopholes and delays.
In such situations, an inch of incorrectness and a few seconds of a slowdown can cause significant losses to an online gambling business. This is when an effective, flexible and high-level risk management system, enhanced with cutting-edge AI-powered tools, can take the situation in hand.
- The bottom-line three components of a top-quality risk management system are:
- innovative sophisticated risk management tools,
- accurate mathematical algorithms,
- a team of expert risk managers.
In risk management, the application of top-notch AI-powered tools has really improved the interaction between the components, by automating the entire manual process. Today, most of the manual tasks that once required human involvement, are entirely performed by AI-enabled risk management software.
The benefits of automating online gambling risk management tasks are quite clear: cutting costs, saving time, reducing errors, increasing effectiveness, etc. Obviously, AI-powered software is brilliant at executing a large part of the risk management tasks. Yet, this does not mean that AI-powered risk management tools are about to cause an unemployment armageddon in the online gaming world. On the contrary, the integration of AI-powered tools into the igaming risk management sector will, in fact, accelerate the process tenfold. The tools will make it even more effective and help risk managers do their job better, faster, and more accurately.
So, moving forward, let’s take a closer look at the main impact AI-powered risk management tools have in the areas of risk mitigation, gaming and betting fraud prevention, predictive analysis provision, and cost reduction related to the risk management staff.
Application of Artificial Intelligence in Risk Management Software
In the 21st-century, companies harness the power of AI-powered tools and software with the intention to make their businesses more productive and up-to-date. In terms of unleashing the potential of AI-based tools, iGaming has been a true pioneer. The implementation of artificial intelligence in the online gambling industry includes, but is not limited to:
- collecting high-quality data,
- analysing player gaming and betting habits,
- tailoring offers to every player’s needs,
- personalising user experience: giving recommendations on bet markets and casino games,
- detecting and preventing illegal gaming and betting activities in advance.
Each of the above-mentioned areas, being an essential piece of a big puzzle, contributes to the success of an igaming business. Here, we will review the advancements that AI brings into igaming risk management processes, such as the detection and early prevention of illegal gaming and betting activities.
Here is what the implementation of AI-powered tools actually means to igaming risk management:
- comprehensive analysis of the entire lifecycle of players,
- automated and semi-automated player segmentation,
- real-time detection of risky behavior with corresponding alert notifications,
- instant application of restraining measures based on the player’s betting behavior.
In a nutshell, automated and semi-automated risk management tools are largely used at every stage of risk management, preventing the malicious activity of players and mitigating risks of loss. Below is a blueprint to show the involvement of AI-powered software in the risk management process:
From registration to verification, from gaming/betting to withdrawal stages, AI-powered risk management tools guarantee the accuracy of the whole process and reduce potential losses that may be brought about by risky players.
What Should a Cutting-Edge Risk Management Tool Be Like?
An innovative AI-based risk management tool must ensure comprehensive and high-level risk management at every stage in a player’s journey. It should offer real-time analytics data, gained through the application of sophisticated machine-learning algorithms. For instance, BetConstruct’s risk management tool Umbrella provides fully automated detection of risky activities, assignment of financial and additional categories, real-time analytics and reports. With a strong focus on AI’s integration into risk management tasks, Umbrella significantly reduces human involvement, improves the accuracy and efficiency of all processes and guarantees risk-free growth for your igaming business.
Author: Ani Baghdasaryan